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Political Today is February 9th, 2010|Hudson Valley Press - More Than News |Bookmark HVPress!
October 2nd, 2009 $8,000 Homebuyer Tax Credit Extension
 Congressman John Hall |
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With the $8,000 tax credit for first-time homebuyers set to expire in less than two months, U.S. Rep. John Hall (D-Dover) is pushing to extend the tax break through 2010 to help middleclass homebuyers and strengthen the housing market. Congressman Hall is cosponsoring the First-Time Homebuyer Credit Extension Act (H.R. 1993), legislation to extend the tax credit through 2010 and he has also sent a bipartisan letter to Congressional leadership asking for quick action to address the situation.
As part of the American Recovery and Reinvestment Act that Congressman Hall helped pass, Congress authorized a tax credit of $8,000 through November 2009. The current $8,000 tax credit has contributed to 400,000 new home sales since February. Although almost two months remain in the duration of the program under current law, the average closing time for a home purchase is almost three months, meaning that new buyers who have not yet begun closing may already be too late.
"This tax incentive for first-time homebuyers has been extremely successful and made progress toward our economy recovering from the worst recession in generations," said Congressman Hall. "Since this tax credit was expanded in February, we have seen house sales rise and some glimpses of price stabilization. While there are some positive signs for the housing market, it still remains extremely fragile. An extension of the housing tax credit will maximize its impact for middleclass homebuyers and the housing market as we work to strengthen our economy."
From April through July, there were three straight months of rising homes prices of single family homes. The numbers of homes sales rose 11 percent from May to June, the largest gain in eight years. However, home prices still remain 15 percent lower than a year ago and first-time homebuyers continue to make up a third of all buyers.
With the program's end looming, homebuilders are already scaling back new home production. New housing starts were down 3% in August from the previous month, after 5 straight months of increases.
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Reader Response
AMY
November 4th, 2009
We have been searching for a home, viewing 20 a week, for the past eight months. The inventory is so small with everyone scrambling to get into Escrow in time for the tax credit. It is heartbraking after 11 offers have been rejected because of a cash buyer sneaking in a lower bid. It will make it even less incentive to go through the heart-ache without the tax credit. Please consider an extension. I know many others in the same boat as me...
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Reader Response
Mayra
October 25th, 2009
My husband and I have been really trying to get a house for the past 5 months now and when we first started I thought that we were definitely going to be able to get the credit. After looking and putting 4 offers that have gone to higher bidders or other investors, we feel a bit discouraged about the whole process and especially because we might not be able to get the credit we thought we would. If there's an extension, it'll really help us get our first home and start a family. We would be deeply grateful because if we don't get the credit, we may just stop looking for a while.
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Reader Response
Griffin
October 20th, 2009
I have never owned a home before, and now I am ready to take advantage of the $8000 tax credit, but it is too late. I would need to find out if this wonderful tax credit program will be extended in order to make my decision. For middle-class people like myself, this credit makes a big difference. Along with many others in the same predicament, I would greatly appreciate at least 6 more months.
Please help! Nov. 30 is approaching very quickly, and I do not want to miss my opportunity to buy.
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Reader Response
T Zam
October 8th, 2009
I'm a first time homebuyer...have placed over 10 offers. All denied due to cash offers / investors / bidding wars. I'm not giving up...PLEASE EXTEND THE CREDIT!!!
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Reader Response
Love
October 7th, 2009
Many home buyers are going to miss out on the $8,000 tax credit due to the never ending short-sale process.Three months turns into 6 months and good bye tax credit.
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Reader Response
Joe Demma
October 5th, 2009
I am a disabled Vet. I have been trying to buy a home sutiable for my needs. This process makes the buying process even more difficult. These bidding wars and co-op cash deals are keeping me from even being considered. I would like the tax credit extended for at least 6 more months. I can use the extra money to adapt my home for access.
Thanks for your time.
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Reader Response
Patty
October 5th, 2009
This would be so helpful to myself as a seller. Without this tax credit, I fear that we will not have any prospective buyers. Especially in the upcoming winter season when historically housing sales decline. Please continue to help promote this bill. Thank you.
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Reader Response
Carlos Vega
October 5th, 2009
I've been in the process of buying a house since August and now my closing date just recently got pushed from November 6 to December 6. Please extend the tax credit, I would hate to lose it because of 6 days!
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Reader Response
Ron
October 5th, 2009
My wife and I are 1st-time home buyers with lower incomes and good credit, yet we can not compete on bidding wars with couples making $150k per year, nor do they need the same help in securing 1st-time ownership as we do. Therefore I would like to see you expand the credit to $10k for those individuals making less than $50k per year or couples making less than $100k per year and up to $15k for those individuals making less than $35k per year and couples making less than $70k. Extend for 6 months and see how it goes. This is the population that truly needs the help in owning a piece of the American Dream and that are getting hit the hardest percentage wise and yet whose vote counts the same as those better off financially. Thanks in advance...
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Reader Response
Eric Miller
October 5th, 2009
The $8,000 tax credit is nice and has definitely helped out the housing market. It has also helped with retaining jobs in the mortgage/real estate industry. I was told that they possibly were considering increasing the credit to $15,000. Is this possible????
We need this more than ever to stay. If chicago can spend $40million for the olympic bid and Obama can spend $1.7 million just to make an appearence in Denmark, the government can afford to spend a measily $8,000 or $15,000 for that matter for buyers in 2010.
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Reader Response
Brian Cooper
October 2nd, 2009
Please extend the credit in its current form, for at least 6 more months. It is working to stabilize home prices, and is helping middle-class people to own their first home.
I recommend a sunset provision, so it does not just end suddenly. This will limit the door slamming shut effect, and help prices to equalize more normally as our economy recovers, and employment (hopefully) begins to rebound.
My wife and I have begun our home search, but it is taking some time to find the right house. We have never owned our own home before, and we are hopeful we can achieve this goal now. But my wife is still unemployed (has never had any trouble finding a job before!), and we can use all the help we can get these days.
Thanks for reading my comment.
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Reader Response
David Stewart
October 2nd, 2009
Where I would love to buy which is close to where I live right now they do not have any homes that would be ready by Nov. 30th.If I purchase somewhere else it would be putting to far away from my job , and may not have time to get the tax credit. Please Extend the Tax Credit. Thanks in advance.
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Reader Response
Rick
October 2nd, 2009
I'm a first time homebuyer that will hopefully be taking advantage of this taxcredit. With the deadline almost here, its caused bidding wars on homes that just sat there for months w/ no bids. Its not the homebuyers fault that closings are now taking anywhere from 45-60 days, but we are the ones that will be penalized if this credit isn't extend it. Please extend it at least 6 months.
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Reader Response
MEL
October 2nd, 2009
I placed an offer on a townhouse back in May and was hoping to close before Nov 30. I was told that a short sale would take 90 to 120 days to close. Two weeks before my closing date, I was told that the goverment was investigating the bank where the property is listed. And now it's going to take another 90 to 120 days to close on that place. As you can see I'm going to miss the deadline on the $8K. PLEASE EXTEND THE CREDIT!
Thanks
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Reader Response
jo kissal
October 2nd, 2009
It would seem prudent to extend this credit as the people I know who are in the process of purchasing new homes will not make the deadline of Nov. 30, 2009 through no fault of their own.
Thank you for considering thisl
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